The idea behind auto insurance is to protect your car, yourself, people you may injure or property you may damage as the result of an accident. While each state sets its own minimum requirements for liability coverage, many drivers choose to add optional coverage such as a comprehensive plan for added protection.
Identification
Comprehensive insurance sometimes goes by the name "Other than collision," or "OTC" insurance. Comprehensive plans cover damage to your vehicle that results from anything other than an accident. Damage can come from natural causes, such as flood damage, fire, a hailstorm or a rock that hits and cracks in your windshield. Comprehensive insurance also covers vandalism, theft and damage that results from hitting an animal, such as a deer, while driving.
Features
Comprehensive insurance plans include standard and optional features. Standard features can include 24-hour claim service, refund of rental car charges, repair set up and guarantee, fuel-efficient vehicle and multiple policy discounts, and like-for-like replacement of newer vehicles. Optional features can include rental car comprehensive coverage and free windshield repair. Some comprehensive policies also feature reimbursement for damage caused to items within the car and damage to anything your car may be towing, such as a trailer. "In car" items can include car and child booster seats, and personal items.
Cost
Allstate insurance describes comprehensive insurance as "pricey." The company explains the insurance is expensive because vehicle damage is one of the more common insurance claims. Costs for comprehensive insurance depend on many factors that depend on you and the vehicle you drive. Personal factors include your age, sex and driving record. Factors that relate to the vehicle include the value of the vehicle, safety features and average repair costs. Another cost factor includes the deductible you choose. Plan deductibles can run from zero to $1,000 or more. In addition, multiple policy discounts and incentives can reduce monthly premiums.
Timeframe
Lenders require financed vehicles to include comprehensive insurance. This requirement is in place to protect the interest the bank or finance company has in the vehicle. Once you pay off the loan, you are free to drop comprehensive coverage. Compu-Quote suggests reevaluating comprehensive coverage on vehicles valued at less than $8,000 as the cost of this insurance can outweigh the price of a replacement vehicle.
Considerations
For some, maintaining comprehensive insurance is worth the additional cost. If you live in a high-crime area, an area prone to natural disasters or drive for a living, you may want to consider maintaining comprehensive insurance for a longer time than you might otherwise. To make the determination on how long to maintain comprehensive insurance, first get the bluebook value of your vehicle from a website such as Edmunds, Kelley Blue book or from your insurance company. Then, compare the value of the vehicle against the cost of the insurance and consider the above factors to help you decide.
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